Issue link: http://winesandvines.uberflip.com/i/1007939
August 2018 WINES&VINES 17 WINE INDUSTRY NEWS I t's no secret that the wine industry in the city of Lodi and the larger Lodi AVA, has been actively expanding its market in the past 20 years. Stuart Spencer, the recently appointed executive director of the Lodi Wine- grape Commission (LWC), opened the Lodi Vineyard & Wine Economics symposium re- flecting on the expansion he's seen since he began working with the LWC in 1999. The number of wineries within the region has grown from eight to 85; the area's grape crop was around 400,000 tons, valued at $250 million back in 1999; today it boasts 750,000 to 800,000 tons valued between $450 million and $550 million. Lodi is also now reaching a broader mar- ketplace. Just within the last three months, Spencer, along with other LWC members, rep- resented Lodi abroad at several industry events. "And the one thing everyone was look- ing for," Spencer said, "Lodi Zinfandel." As synonymous as Lodi is with Zinfandel, so it is with "commodity." Within the wine industry, this means buying grapes at a value price: Cabernet Sauvignon can average $2,000 to more than $7,000 per ton when purchased from North Coast counties, but averages $700 per ton when purchased from Lodi (District 11), according to the state crush report. Brad Alderson, who owns the consulting firm Wine and Winery Advice, presented data reflecting this differentiation in reference to Lodi's history as an AVA. Looking at three of California's most common varietals — Char- donnay, Sauvignon Blanc and Cabernet Sauvi- gnon — his data showed that in 1986 the average price per ton for the three varieties was $398; in 2017, the price was $610 per ton. But, when adjusted for the consumer price index (CPI), the average price in 2017 was really $274. So, in effect, the price for Lodi grapes has decreased overtime. Alderson advised Lodi grape growers to look for premiumization opportunities. "We need to see grapes growing profitably," said Alderson who suggested growers "take the load off Zinfandel" and find other varieties suited to the region. "Put in the research and share practical information," he said. "What makes Lodi great is cooperation." The Lodi Rules sustainability certification program is part of that "cooperation." In fact, the first chapter of the Lodi Rules handbook, according Stephanie Bolton, grower commu- nications and sustainable winegrowing direc- tor for the LWC, is all about business management. She spoke of the importance of grape growers establishing a budget and, spe- cifically, setting aside money for marketing. Since its launch in 2005, membership in the Lodi Rules program has grown from six local growers and 1,500 acres of vineyards to more than 150 growers and 48,000 acres across 11 California crush districts. There are currently more than 60 growers outside of Lodi, includ- ing in Israel, certified under the Lodi Rules, Bolton said. She mentioned testimonials from both grape growers and winemakers as to the effects of the Lodi Rules program, indicating that grape growers have better success selling grapes when certified under the program. "It's their story, a branding message they can sell," she said. And it's a story and brand they can sell to both winemaking partners and the wine consuming public. —Stacy Briscoe How Lodi Grapes Can Avoid Commodity Trap TA K E A L O O K AT O U R N E W W E B S I T E T O F I N D O U T W H AT M A K E S U S D I F F E R E N T w w w . g w k e n t . c o m